Germany's consumer inflation surprisingly slows in January, defying forecast

ANKARA

Germany's annual consumer inflation eased to 2.3% in January, bucking the market forecast of 2.6%, according to flash data released on Friday.

The latest figure marked a decline from December’s 2.6%, led largely by a significant easing in food inflation, according to data from Destatis, Germany’s federal statistical office.

Food prices saw a much slower increase in January, rising just 0.8% year-on-year compared to the 2% hike in December.

Meanwhile, energy costs dropped by 1.6% on an annual basis, maintaining the pace of decline seen in the previous month.

Core inflation, which excludes food and energy, cooled to 2.9% this month from 3.3% in December.

On a monthly basis, consumer prices decreased by 0.2% in January.